PennyMac Financial Services (NYSE:PFSI) Upgraded to Outperform at Keefe, Bruyette & Woods

PennyMac Financial Services (NYSE:PFSI) was upgraded by equities researchers at Keefe, Bruyette & Woods from a “market perform” rating to an “outperform” rating in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has a $115.00 price target on the real estate investment trust’s stock. Keefe, Bruyette & Woods’ price objective would indicate a potential upside of 36.66% from the stock’s previous close.

A number of other research firms have also recently commented on PFSI. Weiss Ratings cut PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, January 20th. Wall Street Zen downgraded PennyMac Financial Services from a “buy” rating to a “hold” rating in a research note on Sunday, January 18th. Jefferies Financial Group began coverage on shares of PennyMac Financial Services in a research report on Friday, December 19th. They set a “buy” rating and a $160.00 price target for the company. BTIG Research reiterated a “buy” rating on shares of PennyMac Financial Services in a research note on Friday, January 30th. Finally, Barclays dropped their price objective on shares of PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating on the stock in a report on Friday, January 30th. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $139.71.

PennyMac Financial Services Stock Down 0.5%

Shares of PennyMac Financial Services stock opened at $84.15 on Monday. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.32. PennyMac Financial Services has a twelve month low of $83.66 and a twelve month high of $160.36. The company has a market cap of $4.39 billion, a price-to-earnings ratio of 9.05, a price-to-earnings-growth ratio of 0.48 and a beta of 1.56. The company’s 50 day moving average is $112.89 and its 200 day moving average is $121.25.

PennyMac Financial Services (NYSE:PFSI) last announced its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share for the quarter, missing analysts’ consensus estimates of $3.23 by ($1.26). The company had revenue of $538.01 million for the quarter, compared to analysts’ expectations of $639.81 million. PennyMac Financial Services had a net margin of 24.48% and a return on equity of 10.20%. PennyMac Financial Services’s quarterly revenue was up 14.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.95 earnings per share. Research analysts anticipate that PennyMac Financial Services will post 13.77 EPS for the current year.

Insider Activity

In related news, CFO Daniel Stanley Perotti sold 2,925 shares of the business’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $93.30, for a total value of $272,902.50. Following the sale, the chief financial officer directly owned 213,550 shares in the company, valued at approximately $19,924,215. The trade was a 1.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Patrick Kinsella purchased 2,250 shares of the business’s stock in a transaction on Thursday, February 12th. The shares were purchased at an average price of $89.15 per share, with a total value of $200,587.50. Following the acquisition, the director directly owned 34,210 shares in the company, valued at $3,049,821.50. This represents a 7.04% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have sold 59,810 shares of company stock valued at $6,268,192. 15.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several large investors have recently bought and sold shares of the business. 140 Summer Partners LP purchased a new position in shares of PennyMac Financial Services in the 3rd quarter worth $55,268,000. Norges Bank bought a new position in shares of PennyMac Financial Services in the 2nd quarter valued at about $39,976,000. Goldentree Asset Management LP purchased a new position in PennyMac Financial Services in the second quarter worth about $29,249,000. Two Sigma Investments LP increased its stake in PennyMac Financial Services by 1,148.7% during the third quarter. Two Sigma Investments LP now owns 310,919 shares of the real estate investment trust’s stock worth $38,517,000 after acquiring an additional 286,019 shares during the last quarter. Finally, Holocene Advisors LP raised its position in PennyMac Financial Services by 2,379.5% during the third quarter. Holocene Advisors LP now owns 245,268 shares of the real estate investment trust’s stock valued at $30,384,000 after purchasing an additional 235,376 shares during the period. Institutional investors own 57.87% of the company’s stock.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc (NYSE: PFSI) is a leading mortgage banking company based in Westlake Village, California. The firm operates through two primary business segments: Production and Mortgage Servicing Rights (MSR). In its Production segment, PennyMac originates residential mortgage loans through retail, wholesale and correspondent channels, focusing on both purchase and refinance transactions. The MSR segment involves the acquisition and servicing of mortgage loans, whereby the company earns fees for managing loan portfolios on behalf of investors.

Since its founding in 2008, PennyMac has grown through a combination of organic origination and strategic acquisition of servicing rights, positioning itself as one of the largest residential mortgage loan servicers in the United States.